Santa Barbara, CA - Matrix announced today all aspects of its Permian Basin Field activity will be coordinated from its new office in Midland, Texas. The activities to include partner coordination and the pursuit of potential acquisitions will be managed by Mr. Johnny Jordan, President of Matrix Oil Corporation. The company expects to participate in 2012 in activity in the basin to include participation in the drilling of 9 development wells, participation in the acquisition of one 3D seismic survey, and participation in numerous well workover activiteis in its current field positions located in Jameson North, JJM Arledge, Rowena, and Boyd Unit Fields located in Mitchell, Nolan, Runnel, and Stonewall Counties. Matrix expects to increase its prodcuction base in 2012 by 100% and plans to pursue potential acquisition of producing properties in urban areas or in leases near its current production.

Whittier, CA. Following 4 days of public hearing in Whittier, held from October 19 to October 25, the City of Whittier Planning Commission voted unanimously (5-0) to approve a staff recommended Draft Conditional-Use Permit to allow drilling on the Matrix City of Whittier Lease and to Certify the Final Environmental Imjpact Report which analyzed the Matrix Oil Corporation Project Proposal. During the 4 days the Planning Commission listened to City Staff, environmental consultants, public citizen comments, either for or against the project, and to Matrix Oil Corporation Officers and consultants that included a presentation, final statement and answers to questions. The approval will allow final consideration of the project by the City of Whittier City Council to include a yes or no vote to Certify the EIR and to allow drilling on the Matrix City lease over the former Chevron owned Whittier Field. Commissioner Fernando Dutra stated, "I believe the benefits far out-weight the negative impacts." One Whittier resident said she thought the vote reflected the will of the people, stating that in the last City Council election, the candidates who opposed drilling were overwhelmingly defeated. The proposal now goes to the Whittier City Council for hearings beginning November 8. If drilling is approved, the City could receive annual oil royalties ranging from $7.5 million to $115.4 million according to a theird-party economic study that was made part of the EIR.

WHITTIER - Matrix Oil is pleased to report that the Whittier City Council received important testimony Tuesday night from recognized experts regarding the City’s right to recover oil and gas from the Preserve. Two separate reports were submitted regarding the Whittier Main Field Oil Project and Proposition A, the Los Angeles County ballot measure that allowed Whittier to purchase the land for the Preserve.

Esther Feldman, a leading environmentalist and the author of Proposition A, gave her analysis regarding the City’s right to extract oil from the Preserve. She concluded that: “Proposition A’s intent and goals can be preserved and that the proposed oil and gas project can be carried out in a manner that is consistent with Proposition A and its implementing documents.”

In addition, Carlyle Hall, Jr., one of California’s foremost legal experts on environmental law and land use, submitted his own report which stated emphatically that Whittier has the right to lease land for oil and gas extraction. He found that, “Longstanding California Real Estate law principles governing the use of lands for public use give Whittier the legal right to extract oil and gas underlying the subject property, so long as, the proposed surface activities do not materially interfere with the public’s use of the parkland.”

“These two reports from independent experts put to rest questions regarding the City’s right to use a small area in the Preserve for greater public benefit. The Whittier Main Field Oil Project has been designed to ensure minimal disruption and to conform to existing environmental law and land use,” said Mike McCaskey, Executive Vice-President of Matrix Oil, after the meeting.

Matrix looks forward to successfully moving through the next stages in the environmental review and public hearings.

Matrix announced results of a successful production test on a second delineation well on its Arledge Prospect on JVA Arledge Lease #3 well in Nolan County, Texas. The JVA operated Arledge #3 drilled to 7042 feet on the JMM Field Lease Offset Prospect is an offset well to the Arledge #2 test for Odom and Ellenburger zones in the structural and stratigraphic closure prospect. The #3 well was tested in the Ellenburger Formation for sustained flowing rates of approximately 160 barrels of oil per day. The well is currently on production and extends/proves the field to an approximate area of 600 acres. From the results of the first three wells it is planned to drill an additional 3 wells by the end of September. Matrix owns a 19 percent position in the prospect with current net production of approximately 56 barrels of oil equivalent per day and net third-party bank-deck forecast reserves of approximately 110,000 barrels of oil equivalent.